NEW YORK, April 26, 2016 /PRNewswire/ -- Emerging Global Advisors (EGA) today announced the results of its latest Emerging Markets (EM) Investor Sentiment Survey, a quarterly poll of asset managers and financial advisors focusing on their sentiment and equity allocations to emerging markets. The EGA EM Investor Sentiment Survey score increased 9% from 495 in the fourth quarter of 2015 to 538 in the first quarter of 2016.
With emerging markets leading other equity regions in the first quarter1 and asset flows turning positive after outflows in the second half of 20152, investors are showing growing interest in increasing portfolio allocations to EM. The percent of respondents who expect to raise their EM equity allocations increased by a third from last quarter.
- Most respondents currently have either 5-10% (37%) or 1-5% (36%) allocation in emerging markets
- 48% of respondents say their current allocation is about the same as 12 months ago, while 37% say it is lower (similar to last survey)
- "Neutral" was the most common answer (42%) for respondents' outlook for EM equities over the next 12 months, followed by "Positive" (33%)
- 51% expect to stay the course with their EM equity allocation in the next 12 months, while 44% expect to increase their EM equity allocation, up 33% from last quarter
- For the best EM investment opportunities/themes in the next 12 months, investors point to India, Asia and domestic consumer demand
- However, most investors do not believe their current emerging market investment strategy completely aligns with the regions and themes they believe are the best investment opportunities
"Less than a third of respondents are confident that their EM allocation reflects the regions and themes with the greatest investment opportunities in EM in the next 12 months," said Marc Zeitoun, Chief Product and Marketing Officer at Emerging Global Advisors. "This survey confirms what our clients have been telling us – increasingly, they are looking to recalibrate their emerging market allocation and want help aligning their portfolios with the areas of growth."
About the EGA EM Investor Sentiment Survey
A total of 91 asset managers and financial advisors, with over 60% managing more than $500 million in assets, participated in the digital survey between March 1 – April 1, 2016. To download the report, visit here.
About Emerging Global Advisors
Emerging Global Advisors (EGA) is a leading provider of strategic beta portfolios in emerging markets and we employ a disciplined, rules-based investment process rooted in research and portfolio strategy. Our investment strategies, including our EGShares suite of ETFs, are designed to help investors generate alpha within their emerging and frontier market allocations. We offer core equity, thematic and equity income emerging and frontier market exposures.
1Source: Bloomberg, MSCI, EGA. MSCI Emerging Markets Index was up 5.69% from January 1 – March 31, 2016.
2 Source: Morningstar, EGA as of March 31, 2016. Reflects EM mutual fund and ETF flows based on those open-end and ETF funds in the Diversified Emerging Market Morningstar category.
Carefully consider the Fund's investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund's prospectus, which may be obtained by calling + 1 888 800 4347 or by visiting the Fund's website egshares.com to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an index.
ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund.
MSCI Emerging Markets Index is an index that is designed to measure equity market performance in global emerging markets. One cannot invest directly in an index.
Marc Zeitoun is a registered representative of ALPS Distributors, Inc. EGA and EGShares Funds are distributed by ALPS Distributors, Inc. Emerging Global Advisors acts as the investment advisor to the Fund. ALPS and Emerging Global Advisors are unaffiliated entities.
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SOURCE Emerging Global Advisors